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Mr. Murad Ali Murad, the Chairman of BBK’s
Board of Directors announced yesterday that BBK Board of directors approved the
reported net profit of BD 37.3 million for the nine months ended 30th September
2014, representing an 8% increase over the same period of last year; with an
earnings per share of 37 fils (2013: 34 fils per share).

In recognition and satisfaction of BBK’s
results, Mr. Murad Ali Murad, chairman of the board of directors commented:
“Achieving our third straight quarter of positive operating earnings growth is a
strong evidence that we are successfully executing our strategy and we believe
that we have put in place all the elements required for sustained performance
and profitability.  Backed by the bank’s resilience and strong fundamentals, we
remain completely focused on serving our clients with excellence and capturing
the growth potential inherent in the core businesses”

The boost in profits was predominantly
attributable to the bank’s robust cost control measures and the growth in core
business income.  Fees and commission income has recorded a growth of 9.0% and
stood at BD 20.9 million as of  the third quarter of 2014 compared to similar
period of last year. Net interest income has shown a moderate growth over same
period of last year, and   amounted to BD 52.6 million for the nine months ended
30th September 2014.
The Bank’s operating costs plunged by 9.7% to amount to
BD 35.5 million, compared to BD 39.3 million recorded for the corresponding
period of last year, primarily reflecting the Bank’s focused efforts towards
process efficiencies and the successful implementation of its  Cost Optimization
Program started in 2013. The cost-to-income ratio has subsequently improved to 
41.3 % as compared to 46.8% recorded as of end of September
2013.
Conservative provisioning of BD 13.1 million (2013: BD 9.6 million)
were undertaken during the year of which BD 9.5 million were on the account of
increasing the general provisions sat as prudence measures to account for
probable future unexpected economic downturns.

Comprehensive income witnessed substantial
growth from BD 31.2 million in September 2013 to BD 51.8 million in September
2014, which was mainly driven by the improvement of investments fair
value.
The net profit for the three months ended 30 September 2014 showed a
growth of 8.4% at BD 10.1 million compared to BD 9.3 million for the same period
of last year, reflecting consistent strength in BBK core business. Net interest
income for the quarter reported at BD 17.8 million, while other income including
fees and commission, FX and investment income reached BD 9.4 million. Operating
costs for the quarter stood at BD 12.2 million, lower than similar period of
last year by 16.5% Total provisions  was increased by BD 5.9 million, of which
BD 4.2 million were on account of general provision .

Commenting on the bank’s performance, Mr.
A.Karim Bucheery, Chief Executive, said “This quarter  as the earlier part of
the year, continued to pose BBK’s robust performance. We’re moving forward, step
by step, as we reach in 2015 the end of our three-year strategic journey of
building a world-class platform for BBK. We are encouraged by our progress
against our long-term objectives and we are confident that we will continue to
be a pioneer in retail and commercial banking by exceeding our customers’
expectations”.

Liquidity position of the bank continued to remain at comfortable levels with
liquid assets (Cash and balances with central banks, treasury bills, Financial
assets at fair value through statement of profit or loss, and Deposits and due
from banks and other financial institutions) to total assets standing at 18.33%
and loan to total deposit ratio at 70.7%. BBK’s capital base continues at
sufficient levels  with  capital adequacy ratio of 15.21% well above regulatory
requirements of 12%.

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